Correlation Between Vakif Finansal and Vakif Menkul

Can any of the company-specific risk be diversified away by investing in both Vakif Finansal and Vakif Menkul at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vakif Finansal and Vakif Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vakif Finansal Kiralama and Vakif Menkul Kiymet, you can compare the effects of market volatilities on Vakif Finansal and Vakif Menkul and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vakif Finansal with a short position of Vakif Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vakif Finansal and Vakif Menkul.

Diversification Opportunities for Vakif Finansal and Vakif Menkul

-0.15

Correlation Coefficient

Vakif Finansal  Vakif Menkul

Good diversification

The 3 months correlation between Vakif and Vakif is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Finansal Kiralama and Vakif Menkul Kiymet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Menkul Kiymet and Vakif Finansal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vakif Finansal Kiralama are associated (or correlated) with Vakif Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Menkul Kiymet has no effect on the direction of Vakif Finansal i.e., Vakif Finansal and Vakif Menkul go up and down completely randomly.

Pair Corralation between Vakif Finansal and Vakif Menkul

Assuming the 90 days trading horizon Vakif Finansal Kiralama is expected to generate 2.79 times more return on investment than Vakif Menkul. However, Vakif Finansal is 2.79 times more volatile than Vakif Menkul Kiymet. It trades about 0.14 of its potential returns per unit of risk. Vakif Menkul Kiymet is currently generating about -0.22 per unit of risk. If you would invest  192.00  in Vakif Finansal Kiralama on October 22, 2024 and sell it today you would earn a total of  15.00  from holding Vakif Finansal Kiralama or generate 7.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vakif Finansal Kiralama  vs.  Vakif Menkul Kiymet

Vakif Finansal Kiralama

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vakif Finansal Kiralama are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Vakif Finansal demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Vakif Menkul Kiymet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vakif Menkul Kiymet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Vakif Menkul is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vakif Finansal and Vakif Menkul

The main advantage of trading using opposite Vakif Finansal and Vakif Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vakif Finansal position performs unexpectedly, Vakif Menkul can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vakif Menkul will offset losses from the drop in Vakif Menkul's long position.

The idea behind Vakif Finansal Kiralama and Vakif Menkul Kiymet pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.